The President of the United States, Donald Trump, has warned numerous trade allies about the imposition of tariffs if they do not address issues he considers harmful to the country. So far, China has been the country most affected by the consequences of these threats.
This trade conflict has impacted several Chinese companies, whose stocks have fallen due to decreased investor confidence. Below are the main brands that have been harmed by the tariffs imposed by the United States.
Chinese Brands Affected by Donald Trump’s Tariffs
Alibaba, one of China’s most prominent companies, has been the most affected by the threat of tariffs. Just last Monday, its shares on the New York Stock Exchange fell by up to 11%; however, the drop was halted, and the decline ended at 9%, with a price of approximately 130 dollars.
In Asian markets, Alibaba’s shares also suffered a drop, though not as severe. On the Hong Kong Stock Exchange, the decline was 2.02%, reaching 135.70 Hong Kong dollars.
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Other Chinese retailers have also faced significant declines. For example, PPD Holdings experienced a loss of more than 9%, trading on the New York Stock Exchange at 119 dollars per share. The same occurred with Baidu, which saw a drop in its shares of just over 3%, settling at 88 dollars.
President Donald Trump aims to impose tariffs on all Chinese products entering the United States, especially those related to technology and energy sectors. Additionally, he has requested that Mexico also impose taxes on its imports from the Asian country.
Howard Lutnick, the U.S. Secretary of Commerce, made this request to the Mexican delegation led by the Secretary of Economy, Marcelo Ebrard, during a meeting that took place last week in Washington. However, the Mexican representatives did not make a clear commitment regarding their trade relationship with China.
When will the tariffs on China take effect?
According to what was announced this Thursday by President Donald Trump, the tariffs will take effect on Tuesday, March 4, 2025.
Why does Donald Trump want to impose tariffs on China?
Donald Trump intends to pressure China to stop the flow of fentanyl and other synthetic drugs into the United States, pointing out that, while these drugs are entering the U.S. from Mexico and Canada “at very high and unacceptable levels,” a large percentage of these drugs (in the form of fentanyl) are supplied by China.
“We cannot allow this scourge to continue harming the United States, and therefore, until it is stopped or seriously limited, the proposed tariffs scheduled to go into effect on March 4 will, of course, go into effect as planned,” he stated.
The Relationship Between the United States and China
The bilateral relationship between the United States and China has become increasingly tense. Recently, U.S. Treasury Secretary Scott Bessent held a video call with Chinese Vice Premier He Lifeng to discuss issues like fentanyl.
The United States accused China of showing no progress in its strategy to curb the trafficking of fentanyl and, instead, being the key supplier of chemical precursors used in the manufacture of this drug, which has caused thousands of deaths annually in the U.S.
He Lifeng expressed concern over these tariffs on Chinese products and agreed with the U.S. Treasury Secretary to maintain dialogue on these issues in order to preserve a good bilateral relationship.
